Hyundai Motor India (HMIL), the passenger car manufacturer, is set to finalise a new long-term wage settlement with its recognised employee union, the United Union of Hyundai Employees (UUHE). The agreement will be another step towards structured labour negotiations at HMIL. It is pertinent to mention here that the previous three-year settlement ended on 31 March, 2024.
Over 2,000 technicians affiliated with UUHE are expected to benefit from the revised package. Sources indicate that the talks between the company and the union have progressed significantly, and a new agreement is likely to be signed soon. The previous settlement, signed in June 2022 and implemented retroactively from April 2021, granted monthly wage hikes totalling Rs 28,200, spread across three years in a phased manner.
Hyundai has confirmed that discussions with UUHE are underway, in accordance with the Tamil Nadu government’s labour guidelines.
As per the company, such wage settlements are part of standard industry practices and typically involve multiple rounds of negotiation. It also reiterated its intention to maintain competitive/ fair compensation structures and ensure employee welfare and business continuity.
Meanwhile, the CITU-backed minority union, which has expressed interest in participating in the negotiations, remains unrecognised by the company. With litigation involving this union pending before the courts, Hyundai has refused to comment on the matter, citing its sub-judice status.
The impact that Hyundai’s new wage deal will have on employee relations and operational stability in India’s auto manufacturing hub needs to be watched.
